The U.S. Treasury’s decision that Russian aluminum giant UC RUSAL can enter new transactions with existing customers in 2019 is likely to stabilize aluminum prices as it removes some uncertainty over the company’s metal deliveries, international rating agency Fitch said in a statement.
“The sanctions against RUSAL are among the main short-term drivers for global aluminum prices with the company’s absence from the market pushing prices towards $3,000 a ton,” the agency said. “Should RUSAL have been unable to renew its delivery contracts, a significant part of its aluminum would have been withdrawn from the market. There was also a risk that the company would have been unable to ship raw materials to refineries and smelters. This could have forced its smelters and refineries to curtail production, reducing available aluminum further and pushing up aluminum prices.” (Prime/Ukrainian metal)
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